Open Access

Outsourcing as a remedy to current challenges and profitability issues within the banking sector

In addition to current market fluctuations, the Banking Sector continues to face emerging challenges such as low profitability, increasing cybercrime, more regulations to comply with, high-­rocketing cost and a huge reliance on information technology. In tackling these challenges, several banks have come to realize that,this can no longer be a one man’s fight. Outsourcing a few functions such as Customer Management, Information Technology, Human Resources Management, Application Management, Payroll Operations, Marketing Activities, Research and Data Processing could help individual banks mitigate risks and solve current demanding problems resulting from complications and challenges within the entire banking sector.
This piece of work will examine the current situation and challenges within the Banking Sector. And with the help of a case study within the German Banking Sector, demonstrates how Outsourcing could serve as a solution to problems resulting from these challenges and complications. Such problems may include: increasing costs, low net-­revenues/profitability and shareholder dissatisfaction.